L Brands (LB) has an uncertain future ahead of it that may not end well
- Shares of L Brands have been put on hold due to reports that Sycamore Partners wants to terminate its transaction with Victoria’s Secret.
- Sycamore filed a lawsuit in a Delaware court on Wednesday in which it asked a judge to terminate the deal.
- Due to this report, the company shares have dropped over 15%.
L Brands, however, plans to do the opposite of Sycamore’s wishes, the company said in a statement that it will “vigorously defend the lawsuit and pursue all legal remedies to enforce its contractual rights,” while continuing to work toward closing the deal as previously agreed. The 82-year-old billionaire and CEO of L Brands, Leslie Wexner, was said to leave the position of CEO and chairman after the transaction was complete. For now, the future for L Brands is uncertain, the stock that is now on sale poses as a gamble for the next several months to come.
About L Brands
L Brands, Inc. engages in the retail of women’s intimate and other apparel, personal care, beauty, and home fragrance products. It operates through the following segments: Victoria’s Secret, Bath & Body Works, and Victoria’s Secret and Bath & Body Works International. The Victoria’s Secret segment sells women’s intimate and other apparel, personal care, and beauty products under the Victoria’s Secret and PINK brand names. The Bath & Body Works segment offers body care, home fragrance products, soaps, and sanitizers under the Bath & Body Works, White Barn, C.O. Bigelow, and other brand names. The Victoria’s Secret and Bath & Body Works International segment includes the Victoria’s Secret and Bath & Body Works stores located outside of the U.S. and Canada, as well as the online business in Greater China. The company was founded by Leslie Herbert Wexner in 1963 and is headquartered in Columbus, OH.